A second-hand car on EMI could be your best decision if you are running short of money. The cost of the vehicle and the interest rate is very low, which makes it affordable. However, you need to be careful while buying a used car as you may not like to spend more on maintenance. 

Many banks and NBFCs offer a hassle-free process with competitive interest rates. You can choose up to 95% of the Insured Declared Value (IDV) of a second-hand car on EMI. 

If you are planning to get a loan for a used car but do not know how much you have to pay monthly as EMI, you can access the used car EMI calculator, which is free to use on nearly all sites lenders. It solves your problem by determining the exact EMI amount you have to pay monthly based on the preferred loan amount, tenure, and the interest rate. 

The best thing about the EMI calculator is that you can change the loan amount, interest rate, and tenure to calculate the EMI. It will help you make an informed decision that best suits your financial requirements. 

Factors affecting loan for a used car 

You can easily get a second hand car on EMI If you meet the eligibility requirements. Here we are sharing some generic criteria adopted: 
 

• You must be either a salaried or self-employed person. 

• It is mandatory to be at least 21 years old when applying for loan and 65 years old at the end of the loan tenure. 

• If you are a salaried person, you fall under a minimum of Rs. 15000 per month salary slab, whereas a self-employed person must show a minimum profit of Rs. 150,000 per annum. 

5 advantages of used car finance

There are many benefits of Muthoot Capital second hand car loan such as lower interest rates and a seamless loan disbursal process. 

Attractive schemes based on your needs

Based on your needs and repayment capacity, there are schemes under which you can receive a certain percentage of the Insured Declared Value of the used car as a loan. Some NBFCs will offer up to 95% of the total value. 

Flexible repayment option 

You can choose a flexible repayment option based on your financial status. You can pay your Monthly Equated Instalments (EMI) anytime from 12 to 60 months. 

Lower Interest rate 

You can buy your dream car at an affordable price with a lower loan interest rate. There are several available schemes based on your credit score and repayment capacity, ensuring you get the best interest rate. The lowest used car loan interest rate starts at 8.5-9%. 

Hassle-free process 

Getting a loan for a used car is easy and hassle-free. Visit your lender’s website and follow some simple steps to get your loan approved. These days the paperwork required is minimal, and lending institutions quickly approve the loan upon submitting correct documents. 

Multiple bases of loan 

There is no need to worry if you don’t have an income, you can still get a used car loan. Many lending institutions offer no income base, income base, and asset proof base loans. You can choose to get a loan any way you like. 

So, if you have made your mind to buy a used car on EMI, then enjoy a transparent, easy, and hassle-free loan process.